Case Summary
| Case ID | 15F-H1515008-BFS |
|---|---|
| Agency | Department of Fire, Building and Life Safety |
| Tribunal | Office of Administrative Hearings |
| Decision Date | 2015-08-27 |
| Administrative Law Judge | M. Douglas |
| Outcome | no |
| Filing Fees Refunded | $0.00 |
| Civil Penalties | $0.00 |
Parties & Counsel
| Petitioner | Thomas Satterlee | Counsel | — |
|---|---|---|---|
| Respondent | Green Valley Country Club Vistas II POA | Counsel | Michael Steven Shupe |
Alleged Violations
Bylaws Articles XIII, XIV, XV
A.R.S. § 33-1804
Outcome Summary
The ALJ dismissed the petition, ruling that the HOA's 2015 amendment vote was valid under the 1990 CC&Rs because the 1992 updates relied upon by Petitioner were never properly adopted. No open meeting violations were found.
Why this result: Petitioner relied on invalid governing documents to assert procedural defects and failed to prove statutory violations.
Key Issues & Findings
Violation of Amendment Procedures
Petitioner alleged the HOA failed to follow the amendment procedures set forth in the 1992 updated Bylaws/Articles, specifically regarding the format of the ballot. The ALJ found that the 1992 updates were never validly approved by the members, and thus the HOA was not bound by them.
Orders: Petition dismissed
Filing fee: $0.00, Fee refunded: No
Disposition: respondent_win
Open Meeting Violation
Petitioner alleged the Board did not provide members sufficient time to review changes or discuss them at the annual meeting. The ALJ found the evidence failed to support a finding that the open meeting requirements were violated.
Orders: Petition dismissed
Filing fee: $0.00, Fee refunded: No
Disposition: respondent_win
Decision Documents
15F-H1515008-BFS Decision – 454928.pdf
15F-H1515008-BFS Decision – 460537.pdf
**Case Summary: Thomas Satterlee v. Green Valley Country Club Vistas II POA**
**Case No. 15F-H1515008-BFS**
**Proceedings Overview**
This matter was heard before the Arizona Office of Administrative Hearings on August 14, 2015. Petitioner Thomas Satterlee, a homeowner, filed a complaint against the Respondent, Green Valley Country Club Vistas II Property Owners Association ("Association"), alleging violations of the Association’s Bylaws and Arizona statutes regarding the amendment of governing documents.
**Key Facts and Arguments**
The dispute centered on an Association vote held on January 29, 2015, to amend and restate the Articles of Incorporation, CC&Rs, and Bylaws.
* **Petitioner’s Argument:** Satterlee alleged the Association failed to follow specific ballot formatting requirements found in a document recorded in March 1992 (the "1992 Update"). Specifically, he argued the Association failed to list the original sections alongside proposed changes on the ballot. He asserted that "no prudent man" would have recorded the 1992 Update unless it had been properly voted on.
* **Respondent’s Defense:** The Association argued the 1992 Update was never validly approved by the membership and was therefore unenforceable. Instead, the Association relied on the 1990 CC&Rs as the valid governing document. They contended the 2015 amendments were necessary to correct errors and were properly adopted by a majority of owners as required by the 1990 CC&Rs.
* **Testimony:** The Association’s Secretary testified she could find no evidence—such as certification or voting records—that the 1992 Update was ever approved by the members. Satterlee admitted under cross-examination that he had no proof the 1992 Update had been voted on by the membership.
**Legal Findings**
Administrative Law Judge M. Douglas issued a decision based on a preponderance of the evidence:
1. **Validity of Governing Documents:** The evidence established that the 1990 CC&Rs were duly approved and recorded. However, the evidence failed to show that the 1992 Update was ever voted on or approved by the members as required. Consequently, the strict formatting provisions of the 1992 Update were not binding.
2. **Compliance with Voting Procedures:** The Judge determined that the January 29, 2015 vote complied with the valid 1990 CC&Rs.
3. **Open Meeting Statutes:** The Judge concluded the evidence did not support a finding that the Association violated open meeting requirements under A.R.S. § 33-1804.
**Outcome and Final Decision**
The Administrative Law Judge ruled that the Petitioner failed to satisfy his burden of proof and ordered the petition dismissed, requiring no action from the Respondent.
On October 7, 2015, the decision was certified as the final administrative decision of the Department of Fire, Building and Life Safety, as the Department took no action to reject or modify the Judge's decision within the statutory review period.
Case Participants
Petitioner Side
- Thomas Satterlee (Petitioner)
Green Valley Country Club Vistas II POA (Member)
Appeared on his own behalf - Michael Simpson (witness)
Green Valley Country Club Vistas II POA
Member for approx 2.5 years; testified regarding insufficient review time - Mike Koning (witness)
Green Valley Country Club Vistas II POA
Testified regarding lack of time to present questions
Respondent Side
- Michael Steven Shupe (attorney)
Goldschmidt and Shupe PLLC
Attorney for Respondent - Howard Marvin (witness)
Green Valley Country Club Vistas II POA
Former President of the Association (2012-2015) - Linda Clemens (witness)
Green Valley Country Club Vistas II POA
Board Secretary
Neutral Parties
- M. Douglas (ALJ)
Office of Administrative Hearings
Administrative Law Judge - Debra Blake (Director)
Department of Fire, Building and Life Safety
Interim Director - Greg Hanchett (Director)
Office of Administrative Hearings
Interim Director; certified the decision - Joni Cage (staff)
Department of Fire, Building and Life Safety
c/o for Debra Blake - Rosella J. Rodriguez (staff)
Office of Administrative Hearings
Mailed/faxed the certification
